Tenet Healthcare Says Third-Quarter Earnings Beat Analysts’ Projections
Santa Barbara-based Tenet Healthcare Corp., the nation's second-largest hospital chain, announced yesterday that its fiscal third-quarter earnings "comfortably" beat analysts' estimates, Bloomberg News/Orange County Register reports. Analysts estimated earnings for the quarter, which ended Feb. 28, at an average of 81 cents per share, compared to 60 cents per share a year earlier. The value of Tenet's shares has risen 40%, to $61, in the past 12 months. Admissions to hospitals that Tenet owned more than a year rose 2% during the quarter. The company has also been trying to attract patients by concentrating on more profitable services such as cardiology and oncology. In addition, Tenet has cut costs and reduced its interest expense by paying off some debt. Analyst Bill Young, co-manager of the Sparrow Growth Fund, said, "There's no indication that there will be any downturn in their earnings potential." Tenet spokesperson Harry Anderson said the company will announce full results for the quarter April 4 (Morley, Bloomberg News/Orange County Register, 3/12).This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.